Wednesday, 27 July 2011

BAIC and AMS-Avto to set up automobile JV in Russia



According to the statement of BAU Motor Corporation on July 19 2011 the Chinese corporation BAIC and the Ulyanovsk company AMS-Avto signed an official agreement about establishing a joint venture to manufacture commercial vehicles and passenger cars in Russia.

In total RUB 5 billion will be invested in the enterprise to ensure the capacity up to 40,000 cars. The enterprise will employ the brand BAW to manufacture offroadsters, mini cans, small and middle size buses and lorries with capacity 1 to 8 tonnes. The official name of the enterprise will be BAW-RUS Motor Corporation.

The Chinese party in the joint venture will be represented by two companies of the Beijing automobile holding BAIC, Beijing Automobile Works and the export/import company BAIEC.

According to the company plans the Beijing automobile holding company BAIC manufacturing automobiles and accessories for over 50 years is among the Top 5 largest automobile companies of China. In 2010, BAIC produced over 1,500,000 cars and should have increased the output to 4,000,000 by 2015. The portfolio of the company brands includes BAW, Hyundai, Chrysler and Mercedes-Benz.

According to the company the pro forma agreement of intent between the Chinese corporation BAIC and the Ulyanovsk BAU Motor Corporation about setting up a joint venture in Ulyanovsk was signed in 2009. Today, the company has already purchased a site for building the enterprise, prepared the production facilities and laid all necessary lines.

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